New Business

Models Social

Entrepreneurship Week 1

Session 1 & 2

Spring 2018 Rotterdam Business School Bert Vermeulen l.j.t.vermeulen@hr.nl Harm Musters h.e.a.c.musters@hr.nl

www.electivese.nl

Team, attendence and respect

80% attendance is required! I will keep a list of attendance so

that I can keep track of your presence/ absence

Bert Vermeulen Harm Musters

Week 1 Introduction Theory sessions (2 h) Workgroup sessions (2 h) + Consultancy (when needed)

Week 1 Introduction •  Why new business models? (1) •  Definition Social

entrepreneurship •  Examples •  Program & deliverables (group

work and individual portfolio) Activities •  Form teams •  Opportunity walk

Week 1 In class student activities

•  Study results opportunity walk •  Select idea for your venture or

alternative •  Identify target group and needs •  Think of possible solutions •  Pitches and feedback •  Code of conduct

Kate Raworth:The Doughnut of social and planetary boundaries

Roadmap next economy: challenges to our society Jeremy Rifkin & Third Industrial Revolution Design Group

-Climate change -Population growth in the cities -Digitisation -Emergence of new economies and global

powers -Exhaustion of our natural resources

Next society

•  Starting position •  Fewer jobs traditional economy •  Digitisation costs jobs as well •  No steady jobs/self employment •  Sharing economy •  Digital platforms enable social and communual

enterprises

•  Goals •  Everybody needs to be given the chance to contribute

and participate •  People with the right skills to contribute •  Understanding what the next economy means for study

and work

To do

•  Labour market •  Need for new business models •  A social system that is no longer linked to steady jobs •  Update regulations/legal system •  Opportunities for all to participate/prevent inequalities

•  Permanent education •  Link innovation to social policy, talent development and better

opportunities (also for low skilled workers)

•  Education •  Skills to recognise opportunities and to adopt an

entrepreneurial attitude •  International & multidisciplinary •  Blurred boundaries school and workplace •  City as learning environment •  Partnerships with businesses

Definition SE : 3 concepts

▸  Entrepreneurship •  Own account •  Risk taking & innovative •  Self interest (individual wealth) creates positive

externalties/social wealth/value. –  consumer choice –  jobs –  innovation & economic growth

▸  Social issues •  Increased public pressure •  Opportunity for innovation & competitive advantage

▸  Non-profit management •  No distribution of profits directors, managers or

shareholders •  Pro bono services •  Serving unmet needs, advocacy role & new values/beliefs

A social enterprise (Verloop & Hillen 2014)

•  A social mission: impact first to change and better the world (poverty, illness, illiteracy, environmental destruction, human rights abuses and corruption)

•  Realising the mission as an independent company that provides a service or product that makes life better.

•  Financially self sustaining. €€€€ needed •  Social governance

•  Transparent •  Profits are reinvested or go to all shareholders •  All stakeholders have a balanced say •  Fair to everyone •  Aware of its ecological footprint

http://www.electivese.nl/dutch-initiatives.html

Example 010 http://www.electivese.nl/rotterdam-initiatieves.html

Granny’s finest! http://www.grannysfinest.com/

Bornstein/Davies 2010: Social entrepreneurship: what everyone needs to know

Social entrepreneurship 1.0 (FOUNDERS) Focus on people with innovative ideas and practical models for achieving major societal impact Social entrepreneurship 2.0 (INSTITUTIONS) Focus on organizational excellence Build sustainable organisations with insights from Business strategy, finance and management. Social entrepreneurship 3.0 (BUILDING PLATFORMS) Change-makers interact and empower others to pursue their ideas and solutions in the participative society.

1.0 , 2.0 & 3.0

Recommended reading

Social Entrepreneurship by David Bornstein & Susan Davies. (€ 11 on bol.com)

Publisher: Warden Press ( 2014) ISBN-10: 949200402X ISBN-13: 978-9492004024

The course helps students to understand the managerial challenges of starting and scaling up a social enterprise.

The ultimate challenge is to use you gained insights and knowledge to make a proposal for a business model of a (imaginary) social venture. And maybe YOU will decide to become a social Entrepreneur in the future?

Superman/woman group assignment (65%) Design your own social enterprise with the building blocks of the course (5000 words)

Individual Portfolio (35%)

- Ideas opportunity walk - Idea space - Feedback given and received - Role in group and peer assessment - 2 business models/value propositions for existing social ventures - Short evaluation of the course + suggestions

(3000 words)

Assessment

Opportunity walk: go out and explore

à Go for a walk. Around school or in your own or another

neighbourhood in your city & IDENTIFY SOCIAL PROBLEMS à Find multiple ideas for social ventures à What might be the top 5 ideas? à Which idea really improves life of people and has great

benefits for society? à Is it doable? Why? How? The purpose? Seeing what is not there! Or, more accurately, think about what should be there! The success in recognizing an opportunity, lies in asking the questions about what is missing or what could be better.

Case Ctaste: success in the dark

What could be the mission? What is the product or service offered? What is the business idea? What is the impact they have? Identify the stakeholders and their

interests Can they be self sustaining?

Explained in a video

https://www.youtube.com/watch?v=1ecKK3S8DOE

https://www.youtube.com/watch?

v=0C3XQ3BTd4o https://www.youtube.com/watch?

v=-9jbXDH81AA

ok

•  Groups! •  Code of conduct •  Preferably 2-3 people per group •  Results opportunity walk •  First idea venture

•  Target group and needs •  Possible solutions/business idea •  Mission •  Impact •  Scalability •  Pitch the first idea and listen to Feedback